<![CDATA[Indonesia is an agrarian country where a large proportion of the population depends on the agricultural sector, particularly rice farming. To improve farmers’ welfare, the government has established the Government Purchase Price (HPP) as a reference for rice paddy prices. However, its implementation still faces challenges due to price manipulation by middlemen, which often causes farmers to receive prices below the established threshold. This study aims to analyze the effects of the government’s rice paddy pricing policy and middlemen’s price manipulation on farmers’ welfare in Mekarjaya Village, Panimbang District, as well as examine these practices from an Islamic economic perspective. This study employed a mixed-methods approach with a sequential explanatory design. Quantitative data were collected through questionnaires from 97 respondents, while qualitative data were obtained through interviews and observations. Data were analyzed using multiple linear regression, t-test, F-test, correlation analysis, and the coefficient of determination. The results show that the government’s rice paddy pricing policy (X₁) has no significant effect on farmers’ welfare (t = 1.215; Sig. = 0.228 > 0.05). In contrast, middlemen’s price manipulation (X₂) has a significant effect on farmers’ welfare (t = –3.876; Sig. = 0.000 < 0.05). From an Islamic economic perspective, the government’s pricing policy is consistent with the principles of justice and public benefit, whereas middlemen’s price manipulation contains elements of gharar and zulm that disadvantage farmers.]]>
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